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CFA Level I · CFA Level I Exam · Guidance for Standard III: Duties to Clients

Carlos Mendes, a CFA candidate, receives a request from CFA Institute Professional Conduct for client records relevant to an investigation into a colleague's conduct. No law prevents him from providing them. Which action is most consistent with Standard III(E)?

Mendes should cooperate. Standard III(E) does not prevent members and candidates from cooperating with Professional Conduct investigations, and they must cooperate, including in investigations of others, unless prevented by law. Professional Conduct also keeps the information it receives confidential.

  1. ARefuse the request, because client information may never be shared with a third party
  2. BProvide the records after obtaining the client's consent, because consent is the only exception that applies
  3. CCooperate with the investigation, because Standard III(E) does not prevent cooperation with Professional ConductCorrect

Explanation

Under the guidance, Standard III(E) does not prevent cooperating with a Professional Conduct investigation, and members and candidates must cooperate unless prevented by law. They are also required to cooperate with investigations into the conduct of others. Professional Conduct keeps the documents it receives confidential. The other options wrongly treat confidentiality as absolute or consent as the only route.

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